operations

West Texas Region

Citation's first substantial property acquisition in West Texas occurred in 1986 when it purchased a number of Permian Basin properties from Shell Oil Company. Since that time, Citation has continued to expand its production base in West Texas and New Mexico, making it one of the more mature of all of Citation's regions. Citation has purchased additional assets in the Permian Basin from companies such as Amoco, Exxon, Texaco and Mobil, and those assets include both primary and secondary recovery projects.

Citation’s current development activity in its West Texas Region has focused on the North Robertson, Flowers and Jordan fields. In 2010 and 2011, Citation drilled over 20 wells in the San Andres reservoir at North Robertson in Gaines County, which increased production by over 550 Bopd. Citation then unitized the San Andres in late 2013, drilled 14 infill injectors, and has seen production respond to waterflooding to over 750 BOPD. Citation has continued this development in 2012-14. Citation also plans further development of the North Robertson Clearfork reservoir with infill drilling and waterflood pattern optimization. In 2014 we drilled 5 new producers in the Clearfork reservoir. Drilling at the Flowers Canyon Sand Unit continued in 2014 with the completion of 16 additional wells to set up five new five-spot waterflood patterns. Previous drilling programs at Flowers from 2008-2013, resulted in 91 new development wells. In the Jordan field, located in Ector County, upside potential is being exploited through injector reactivations, profile management, recompletion activity and infill drilling. At Jordan, Citation has now drilled over 60 infill wells from 2009-2014 along with numerous injection conversions and reactivations.

In September of 2014, Citation increased its proved reserves by 11 MMBOE in the Permian Basin with its acquisition of properties from a private operator in Andrews and Gaines counties.